Zenoti, a software provider to salons and spas, has raised $15 million (Rs 100 crore) in a new funding round led by Norwest Venture Partners, along with existing investor Accel India.

The company plans to use the funds to expand market share, drive product innovation and add manpower. It will also use the money to expand into the fitness and yoga segments, the company said in a statement.

Zenoti CEO Sudheer Koneru said the company had been focusing on building a strong foundation of technology and customer service excellence over the past few years. “This funding enables us to establish ourselves as a leader in the industry,” he said.

Before co-founding Zenoti, Sudheer led a team that developed the Windows OS. He also founded an enterprise software company, which later became SumTotal and which he helped grow to $100 million. Later, the two brothers founded a chain of health clubs, spas, and salons under the Tangerine Spa and Salon and Latitudes Fitness banner in Seattle.

Zenoti operates as a software-as-a-service platform that provides services and solutions for the spa and wellness industry. Its solutions include billing, customer relationship management, staff management, inventory control and analytics.

The company has offices in seven countries and customers in 32 countries. It claims to have about 5,000 customers including Kaya Skin, Lakme, Enrich Salons, Naturals and Urban Nirvana. The company recently expanded into the resorts segment, adding Taj Hotels, Crown Hotels and Alaya hotels to its client list.

Companies such as Zenoti are targeting the beauty and wellness market in India, a segment that the KPMG Wellness Report expects to grow to Rs 80,370 crore in 2017-18. While several startups have emerged in India in recent years and have even gained investors' attention, most of those operate more as marketplaces for spas and wellness services providers and not as software providers. Vyomo, MyGlamm, Stylofie are some startups that have managed to raise funding.